Sales and Purchase-Related Transactions for Seller and Buyer The following selected transactions were completed during June between Snipes Company and Beejoy Company: Instructions: 1. Illustrate the effects on the accounts and financial statements of recording the following transactions for Snipes Company. Identify each transaction by date. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000. June 8. Snipes Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on June 8 Balance Sheet Statement of Income Liabilities Stockholders' Equity Assets + Cash Flows Statement Cash Accounts Receivable No Effect No Effect Retained Earnings + June 8 7,850 June 8. -400 18,250 -10,000 Statement of Cash Flows Income Statement Operating Sales -400 18,250 Cost of goods sold 10,000 Delivery expense 400 Net income 7,850 June 12. Beejoy Company returned merchandise with a selling price of $5,000 ($4,900 net of discount) purchased on June 8 from Snipes Company. The cost of the merchandise returned was $3,000. Balance Sheet Statement of Income Stockholders' Equity Liabilities Assets + = Cash Flows Statement Retained Earnings Accounts Receivable Cust. Refunds Payable Inventory Est. Return Inventory + + + June 12 June 12 -3,000 -4,900 3,000 -4,900 3,100 Statement of Cash Flows Income Statement No effect No effect June 23. Beejoy Company paid Snipes Company for purchase of June 8, less refund on return of June 12. Balance Sheet Stockholders Statement of Income Liabilities Assets + Cash Flows Equity Statement Cash No Effect No Effect Accounts Receivable + + June 23. June 23. Statement of Cash Flows Income Statement Operating No effect June 24. Snipes Company sold merchandise on account to Beejoy Company, $15,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $9,000. Balance Sheet Stockholders Statement of Income Liabilities Assets Cash Flows Equity Statement No Effect Accounts Payable No Effect Inventory + June 24. June 24. Statement of Cash Flows Income Statement Operating No effect No effect No effect June 30. Beejoy Company paid Snipes Company on account for purchase of June 24. Balance Sheet Stockholders Statement of Income Liabilities Assets Cash Flows Equity Statement No Effect No Effect Cash Accounts Payable + June 30. Statement of Cash Flows Income Statement Operating No effect 2. Illustrate the effects on the accounts and financial statements of recording the following transactions for Beejoy Company. Identify each transaction by date. June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000. June 8. Snipes Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on June 8. Balance Sheet Statement of Cash Income Stockholders' Equity Liabilities Assets Flows Statement June 8 Statement of Cash Flows Income Statement June 12. Beejoy Company returned merchandise with a selling price of $5,000 ($4,900 net of discount) purchased on June 8 from Snipes Company. The cost of the merchandise returned was $3,000. Balance Sheet Statement of Cash Income Liabilities Stockholders' Equity Assets Flows Statement June 12 Statement of Cash Flows Income Statement June 24. Snipes Company sold merchandise on account to Beejoy Company, $15,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $9,000 Balance Sheet Statement of Cash Income Stockholders' Equity Liabilities Assets + Flows Statement June 24 Statement of Cash Flows Income Statement June 26. Beejoy Company paid transportation charges of $375 on June 24 purchase from Snipes Company Balance Sheet Statement of Cash Income Stockholders' Equity Liabilities Assets + Flows Statement June 26 Statement of Cash Flows Income Statement June 30. Beejoy Company paid Snipes Company on account for purchase of June 24 Balance Sheet Statement of Cash Income Stockholders' Equity Assets Liabilities Statement Flows June 30, Statement of Cash Flows Income Statement